Romanian electricity suppliers question Govt.’s ‘cap and compensation’ schema

The association of electricity suppliers from Romania (AFEER) questions several provisions of the schema aimed at capping the end-user electricity prices, inked in the emergency ordinance of the Government (OUG) 118/2021. It will result in higher electricity prices and scarce supplies on the market, they argue, according to Agerpres.

Specifically, the association questions the mechanism by which they are supposed to get compensated for delivering electricity at low end-user prices.

Under the OUG 118/2021, the energy producers will pay an 80% tax on the revenues generated by the prices above RON 450 (EUR 90) per MWh. The funds thus collected will be used to compensate the electricity suppliers up to a profit margin of 5%. It is not clear when and how these compensations will be paid, AFEER said.

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